Telemetry is the process of measuring physical variables remotely and transmitting the data to another location for analysis and recording. The document discusses different types of telemetry including wire and wireless systems. It provides details on the components of a basic telemetry system such as transducers, conditioning circuits, modulators/encoders, transmitters, receivers, and demodulators. Wireless telemetry is commonly used for applications where the measurement area is not accessible, as it allows transmission over longer distances and at higher speeds compared to wire systems. Real-time telemetry is important for applications like aircraft testing where data is monitored during maneuvers from a safe ground station.